President Donald Trump has said the United States is considering the use of the American military to escort tankers through the Strait of Hormuz after the Islamic Revolutionary Guard Corps (IRGC) announced the closure of the waterway.

In an interview with Iranian state media on Monday, Ebrahim Jabari, a senior adviser to the commander-in-chief of the IRGC, announced the guards had decided to close the strait while threatening to set any ship that passes through the corridor ablaze.

“The strait (of Hormuz) is closed. If anyone tries to pass, the heroes of the Revolutionary Guards and the regular navy will set those ships ablaze,” Mr Jabari said as Iran intensifies retaliatory attacks across the Middle East over the ongoing U.S.-Israel military operations in the Islamic Republic.

Responding to the supposed closure in a statement on Tuesday, Mr Trump disclosed that he has directed the U.S. Development Finance Corporation to set up a reasonable insurance rate for all trade passing through the Strait of Hormuz, which is the route for 20 per cent of global oil and gas supply.

“Effective immediately, I have ordered the United States Development Finance Corporation (DFC) to provide, at a very reasonable price, political risk insurance and guarantees for the financial security of all maritime trade, especially energy, travelling through the Gulf. This will be available to all shipping lines,” the American leader noted.

Mr Trump assured that the United States will ensure the continuous shipment of goods through the strait, even if it means using the American Navy to patrol the waterway.

“If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz as soon as possible. No matter what, the United States will ensure the free flow of energy to the world. The United States’ economic and military might is the greatest on earth—more actions to come,” Mr Trump added.